EX-99.2 3 d622785dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the 3 months ending September 30, 2018 and 2017

 

     3rd Quarter        

(in thousands, except per share data)

   2018     2017     Change  

Revenues

      

Oil, natural gas liquids and natural gas sales

   $ 380,884     $ 249,114     $ 131,770  

Loss on derivative instruments, net

     (154,628     (57,610     (97,018
  

 

 

   

 

 

   

 

 

 

Total revenues

     226,256       191,504       34,752  
  

 

 

   

 

 

   

 

 

 

Operating Costs and Expenses

      

Oil, natural gas liquids and natural gas production

     55,078       44,549       10,529  

Production and ad valorem taxes

     25,204       15,326       9,878  

Depreciation, depletion and amortization

     134,177       131,756       2,421  

Asset impairment

     178       100       78  

Exploration

     963       625       338  

General and administrative (including stock-based compensation of $5,076 and $4,713 for the three months ended September 30, 2018 and 2017, respectively)

     29,566       21,590       7,976  

Accretion of discount on asset retirement obligations

     1,604       1,473       131  

Gain on sale of assets and other, net

     (191     (5,977     5,786  
  

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     246,579       209,442       37,137  
  

 

 

   

 

 

   

 

 

 

Operating Loss

     (20,323     (17,938     (2,385
  

 

 

   

 

 

   

 

 

 

Other Income (Expense)

      

Interest expense

     (11,550     (9,985     (1,565

Other income

     1       231       (230
  

 

 

   

 

 

   

 

 

 

Total other expense

     (11,549     (9,754     (1,795
  

 

 

   

 

 

   

 

 

 

Loss Before Income Taxes

     (31,872     (27,692     (4,180

Income tax benefit

     (5,300     (9,206     3,906  
  

 

 

   

 

 

   

 

 

 

Net Loss

   $ (26,572   $ (18,486   $ (8,086
  

 

 

   

 

 

   

 

 

 

Diluted Earnings Per Average Common Share

   $ (0.27   $ (0.19   $ (0.08
  

 

 

   

 

 

   

 

 

 

Basic Earnings Per Average Common Share

   $ (0.27   $ (0.19   $ (0.08
  

 

 

   

 

 

   

 

 

 

Diluted Average Common Shares Outstanding

     97,485       97,198       287  
  

 

 

   

 

 

   

 

 

 

Basic Average Common Shares Outstanding

     97,485       97,198       287  
  

 

 

   

 

 

   

 

 

 


CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the 9 months ending September 30, 2018 and 2017

 

     Year-to-date        

(in thousands, except per share data)

   2018     2017     Change  

Revenues

      

Oil, natural gas liquids and natural gas sales

   $ 1,110,317     $ 644,212     $ 466,105  

Gain (loss) on derivative instruments, net

     (188,242     45,037       (233,279
  

 

 

   

 

 

   

 

 

 

Total revenues

     922,075       689,249       232,826  
  

 

 

   

 

 

   

 

 

 

Operating Costs and Expenses

      

Oil, natural gas liquids and natural gas production

     165,671       129,746       35,925  

Production and ad valorem taxes

     72,505       41,364       31,141  

Depreciation, depletion and amortization

     392,398       352,957       39,441  

Asset impairment

     428       1,589       (1,161

Exploration

     3,420       6,259       (2,839

General and administrative (including stock-based compensation of $13,839 and $11,101 for the nine months ended September 30, 2018 and 2017, respectively)

     73,756       62,014       11,742  

Accretion of discount on asset retirement obligations

     4,704       4,330       374  

Gain on sale of assets and other, net

     (34,027     (6,980     (27,047
  

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     678,855       591,279       87,576  
  

 

 

   

 

 

   

 

 

 

Operating Income

     243,220       97,970       145,250  
  

 

 

   

 

 

   

 

 

 

Other Income (Expense)

      

Interest expense

     (32,601     (28,210     (4,391

Other income

     693       1,006       (313
  

 

 

   

 

 

   

 

 

 

Total other expense

     (31,908     (27,204     (4,704
  

 

 

   

 

 

   

 

 

 

Income Before Income Taxes

     211,312       70,766       140,546  

Income tax expense

     50,695       26,368       24,327  
  

 

 

   

 

 

   

 

 

 

Net Income

   $ 160,617     $ 44,398     $ 116,219  
  

 

 

   

 

 

   

 

 

 

Diluted Earnings Per Average Common Share

   $ 1.64     $ 0.45     $ 1.19  
  

 

 

   

 

 

   

 

 

 

Basic Earnings Per Average Common Share

   $ 1.65     $ 0.46     $ 1.19  
  

 

 

   

 

 

   

 

 

 

Diluted Average Common Shares Outstanding

     98,013       97,678       335  
  

 

 

   

 

 

   

 

 

 

Basic Average Common Shares Outstanding

     97,413       97,176       237  
  

 

 

   

 

 

   

 

 

 


CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of September 30, 2018 and December 31, 2017

 

(in thousands)

   September 30, 2018      December 31, 2017  

ASSETS

     

Current Assets

     

Cash and cash equivalents

   $ 17,057      $ 439  

Accounts receivable, net

     183,816        158,787  

Inventories, net

     28,652        13,177  

Derivative instruments

     4,226        —    

Income tax receivable

     6,762        6,905  

Prepayments and other

     5,999        12,085  
  

 

 

    

 

 

 

Total current assets

     246,512        191,393  
  

 

 

    

 

 

 

Property, Plant and Equipment

     

Oil and natural gas properties, net

     5,351,637        4,718,939  

Other property and equipment, net

     43,471        44,581  
  

 

 

    

 

 

 

Total property, plant and equipment, net

     5,395,108        4,763,520  
  

 

 

    

 

 

 

Other postretirement assets

     2,590        2,646  

Noncurrent income tax receivable, net

     70,716        70,716  

Other assets

     9,112        5,620  
  

 

 

    

 

 

 

TOTAL ASSETS

   $ 5,724,038      $ 5,033,895  
  

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current Liabilities

     

Accounts payable

   $ 129,602      $ 75,167  

Accrued taxes

     23,509        2,631  

Accrued wages and benefits

     15,416        26,170  

Accrued capital costs

     150,600        74,909  

Revenue and royalty payable

     65,023        54,072  

Derivative instruments

     172,772        71,379  

Other

     12,635        17,916  
  

 

 

    

 

 

 

Total current liabilities

     569,557        322,244  
  

 

 

    

 

 

 

Long-term debt

     953,173        782,861  

Asset retirement obligations

     94,722        88,378  

Noncurrent derivative instruments

     57,457        8,886  

Deferred income taxes

     435,848        387,807  

Other long-term liabilities

     5,398        5,262  
  

 

 

    

 

 

 

Total liabilities

     2,116,155        1,595,438  
  

 

 

    

 

 

 

Total Shareholders’ Equity

     3,607,883        3,438,457  
  

 

 

    

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

   $ 5,724,038      $ 5,033,895  
  

 

 

    

 

 

 


SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending September 30, 2018 and 2017

 

     3rd Quarter        

(in thousands, except sales price and per unit data)

   2018     2017     Change  

Operating and production data

 

Oil, natural gas liquids and natural gas sales

      

Oil

   $ 316,059     $ 203,281     $ 112,778  

Natural gas liquids

     49,407       25,508       23,899  

Natural gas

     15,418       20,325       (4,907
  

 

 

   

 

 

   

 

 

 

Total

   $ 380,884     $ 249,114     $ 131,770  
  

 

 

   

 

 

   

 

 

 

Open non-cash mark-to-market gains (losses) on derivative instruments

 

Oil

   $ (127,642   $ (46,395   $ (81,247

Natural gas liquids

     (15,386     (15,765     379  

Natural gas

     (558     (105     (453
  

 

 

   

 

 

   

 

 

 

Total

   $ (143,586   $ (62,265   $ (81,321
  

 

 

   

 

 

   

 

 

 

Closed gains (losses) on derivative instruments

      

Oil

   $ (1,567   $ 5,388     $ (6,955

Natural gas liquids

     (10,355     (1,923     (8,432

Natural gas

     880       1,190       (310
  

 

 

   

 

 

   

 

 

 

Total

   $ (11,042   $ 4,655     $ (15,697
  

 

 

   

 

 

   

 

 

 

Total revenues

   $ 226,256     $ 191,504     $ 34,752  
  

 

 

   

 

 

   

 

 

 

Production volumes

      

Oil (MBbl)

     5,562       4,510       1,052  

Natural gas liquids (MMgal)

     81.4       60.6       20.8  

Natural gas (MMcf)

     11,934       9,174       2,760  
  

 

 

   

 

 

   

 

 

 

Total production volumes (MBOE)

     9,489       7,483       2,006  
  

 

 

   

 

 

   

 

 

 

Average daily production volumes

      

Oil (MBbl/d)

     60.5       49.0       11.5  

Natural gas liquids (MMgal/d)

     0.9       0.7       0.2  

Natural gas (MMcf/d)

     129.7       99.7       30.0  
  

 

 

   

 

 

   

 

 

 

Total average daily production volumes (MBOE/d)

     103.1       81.3       21.8  
  

 

 

   

 

 

   

 

 

 

Average realized prices excluding effects of open non-cash mark-to-market derivative instruments

 

Oil (per barrel)

   $ 56.54     $ 46.27     $ 10.27  

Natural gas liquids (per gallon)

   $ 0.48     $ 0.39     $ 0.09  

Natural gas (per Mcf)

   $ 1.37     $ 2.35     $ (0.98

Average realized prices excluding effects of all derivative instruments

 

Oil (per barrel)

   $ 56.82     $ 45.07     $ 11.75  

Natural gas liquids (per gallon)

   $ 0.61     $ 0.42     $ 0.19  

Natural gas (per Mcf)

   $ 1.29     $ 2.22     $ (0.93

Costs per BOE

      

Oil, natural gas liquids and natural gas production expenses

   $ 5.80     $ 5.95     $ (0.15

Production and ad valorem taxes

   $ 2.66     $ 2.05     $ 0.61  

Depreciation, depletion and amortization

   $ 14.14     $ 17.61     $ (3.47

Exploration expense

   $ 0.10     $ 0.08     $ 0.02  

General and administrative

   $ 3.12     $ 2.89     $ 0.23  

Capital expenditures (including acquisitions)

   $ 396,931     $ 251,621     $ 145,310  


SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 9 months ending September 30, 2018 and 2017

 

     Year-to-date        

(in thousands, except sales price and per unit data)

   2018     2017     Change  

Operating and production data

 

Oil, natural gas liquids and natural gas sales

      

Oil

   $ 936,136     $ 532,652     $ 403,484  

Natural gas liquids

     125,591       59,776       65,815  

Natural gas

     48,590       51,784       (3,194
  

 

 

   

 

 

   

 

 

 

Total

   $ 1,110,317     $ 644,212     $ 466,105  
  

 

 

   

 

 

   

 

 

 

Open non-cash mark-to-market gains (losses) on derivative instruments

 

Oil

   $ (110,258   $ 42,730     $ (152,988

Natural gas liquids

     (24,203     (4,148     (20,055

Natural gas

     (305     8,856       (9,161
  

 

 

   

 

 

   

 

 

 

Total

   $ (134,766   $ 47,438     $ (182,204
  

 

 

   

 

 

   

 

 

 

Closed gains (losses) on derivative instruments

      

Oil

   $ (35,247   $ (470   $ (34,777

Natural gas liquids

     (20,585     (3,468     (17,117

Natural gas

     2,356       1,537       819  
  

 

 

   

 

 

   

 

 

 

Total

   $ (53,476   $ (2,401   $ (51,075
  

 

 

   

 

 

   

 

 

 

Total revenues

   $ 922,075     $ 689,249     $ 232,826  
  

 

 

   

 

 

   

 

 

 

Production volumes

      

Oil (MBbl)

     15,710       11,608       4,102  

Natural gas liquids (MMgal)

     228.1       146.0       82.1  

Natural gas (MMcf)

     33,414       22,500       10,914  
  

 

 

   

 

 

   

 

 

 

Total production volumes (MBOE)

     26,709       18,833       7,876  
  

 

 

   

 

 

   

 

 

 

Average daily production volumes

      

Oil (MBbl/d)

     57.5       42.5       15.0  

Natural gas liquids (MMgal/d)

     0.8       0.5       0.3  

Natural gas (MMcf/d)

     122.4       82.4       40.0  
  

 

 

   

 

 

   

 

 

 

Total average daily production volumes (MBOE/d)

     97.8       69.0       28.8  
  

 

 

   

 

 

   

 

 

 

Average realized prices excluding effects of open non-cash mark-to-market derivative instruments

 

Oil (per barrel)

   $ 57.34     $ 45.85     $ 11.49  

Natural gas liquids (per gallon)

   $ 0.46     $ 0.39     $ 0.07  

Natural gas (per Mcf)

   $ 1.52     $ 2.37     $ (0.85

Average realized prices excluding effects of all derivative instruments

 

Oil (per barrel)

   $ 59.59     $ 45.89     $ 13.7  

Natural gas liquids (per gallon)

   $ 0.55     $ 0.41     $ 0.14  

Natural gas (per Mcf)

   $ 1.45     $ 2.30     $ (0.85

Costs per BOE

      

Oil, natural gas liquids and natural gas production expenses

   $ 6.20     $ 6.89     $ (0.69

Production and ad valorem taxes

   $ 2.71     $ 2.20     $ 0.51  

Depreciation, depletion and amortization

   $ 14.69     $ 18.74     $ (4.05

Exploration expense

   $ 0.13     $ 0.33     $ (0.20

General and administrative

   $ 2.76     $ 3.29     $ (0.53

Capital expenditures (including acquisitions)

   $ 991,853     $ 971,867     $ 19,986